Philanthropy and Positive Youth Development : Promoting Good Ideas in a Tough Environment

1. Philanthropy and Positive Youth Development : Promoting Good Ideas in a Tough Environment May 19, 2003 Debra Y. Delgado, Senior Associate Annie E. Casey Foundation

2. Discussion Objectives • Provide a brief overview of key trends shaping philanthropic giving in the past 5 years; • Describe implications for Grantmakers and Grantseekers; and • Develop recommendations on how to make the case for PYD and younger teens.

3. Rapidly Changing Nature of Philanthropy • “Record-setting gains in the U.S. economy and stock market through the first half of the year, along with dramatic increases in funding by a few exceptionally large grantmakers, helped the nation’s foundations achieve unprecedented growth in 2000” Foundation Giving Trends, 2001 edition

4. Growth in Giving, 2000 • Approx. 48,000 organizations received 120,000 grants; • Giving by 1,015 sampled foundations grew by 29.7% to $15B between 1999 and 2000; and • Number of grants rose by 10.7%

5. Growth in Giving • Record 582 grants of $2.5M or more reported in 2000; • Foundations reported a five-fold increase in the number of grants of $5Million + between 1991 and 2000; and • Eleven-fold increase reported in $10million +

6. Giving by Subject Focus • Health experienced fastest growth in grant $$s followed by the environment, animals and education; and • Roughly 9 out of 10 foundations gave for health, human services, arts & culture and education.

7. Giving by Types of Support • Program support represented close to ½ of 2000 grant $$$s; • General operating support accounted for one-in-seven grant $$s and almost one-in-five grants; and • More than 1/5 of grant $$s provided capital support.

8. Even in the Best of Times… • At least ½ of grants were for $50,000 or less in all subject areas except science; and • Over 90% of foundations have less than 3 FTEs.

9. …Minor Shifts in the Grantmaking Sand • 142 foundations surveyed: • 15 reported giving would drop • 64 predicted grantmaking would remain flat • Council of Foundations, 2/01

10. Survey Results • Sharp drop in assets for some of the major players: • Packard plunged by 25% • Kellogg fell by 24% • These 2 combined with an additional 63 foundations saw wealth decline by aggregate sum of $9B

11. Emerging Changes in Practice • Cash flow (change from annual or semiannual payments to quarterly or monthly); and • Tighter scrutiny on requests for no-cost extensions.

12. Summarizing the Trends • In the late 1990’s big, bold visionary thinking was spurred by unprecedented growth in assets; • Growth spurt reversed directions almost overnight; and • New primary order question for private funders: How to do more with less? • What are the best bets? • Who are the strongest partners? • How to maximize the return on investments?

13. Implications for Grantmaking Practice – AECF as an example • Maintain our grantmaking commitments; • Get more clear about desired results and the “return on our investments”; • Use results framework to evaluate new ideas; and • Seek funding partners.

14. Implications for Grantseekers • Homework is essential: • Information (research) about the foundation should be up-to-date. Double-check the facts: • Funding priorities; • Staff; and • Grant application procedures, etc.

15. Challenges No current national funders Initiative focused exclusively on PYD practice Limited resources translate into more narrow but strategic “targets” e.g. geography, sector, population PYD framed within context of school reform, after-school programs, etc Opportunities Younger teens’ issues have to be addressed within the context of families and communities; Prevention messages resonate with funders; and Growing interest in key transition points for young people. Making the Case for PYD and Younger Teens

16. Frame the Opportunities & Name the Results for Young Teens… • Name the problems/issues but also frame solutions in terms of results. For example: • Influence: What knowledge, behaviors, practices, policies, etc will change as a result of this investment? • Leverage: What private/public $$$ will be leveraged? • Impact: How many families/young people will benefit?

17. Framing the Opportunities… Think nationally in terms of strong research & data and seek funds locally: Local/regional foundations continue to be keen on youth-related issues & value partners who are conceptually strong, clear about best practices and positioned to demonstrate local impact.

18. Reframing Perspective: The Young Teen’s Advocate as an Advisor • Context & content is increasingly valuable: • Key trends & issues affecting young teens; • Knowledge of best practices; and • What’s the connection (to the funder, to the consumer, etc).

19. Know What the Funders Know.. • Foundations and Funders’ Networks offer useful resources to track issues and trends (e.g., Kids Count) • Networks also are designed to: • Accelerate the learning curve for funders & grantees thru dissemination of emerging reports; and • Help surface & opportunities for collaboration thru e-bulletins, etc.

20. Information Resources: A National Example • Funders’ Collaborative on Youth Organizing, www.fcyo.org Sample postings: • Current RFP • 2001 and 2002 grants list • Downloadable copies of current reports: • Strategies for Building Power and Youth Leadership • Youth Organizing: Expanding Possibilities for Youth Development • An Annotated Bibliography on Youth Organizing • Electronic newsletter sign up

21. Summation • Changes have been fast and furious over the past five years; • New ways of doing business are emerging (internet, networking and resource sharing); and • Shifts open up the door for thinking differently about grantmaker/grantseeker relationships on emerging issues like PYD & young teens.

22. Information Resources: National Examples • Youth in Transition Funders Group • Funders Concerned About AIDShttp://www.fcaaids.org • Grantmakers for Children, Youth & Familieshttp://www.gcyf.org • Grantmakers In Healthhttp://www.gih.org